The value of the equity invested in business not publicly traded is known as the private equity market.

Why not just get a bank loan?

Since the early 1970’s the private equity market has been growing steadily.  The private equity market continues performing strongly and is still in growth today despite the still unfavorable financial climate.  A greater proportion of equity is generated across the private equity market as venture capitalists invest less and less regularly and with smaller financial commitments.  Banks are becoming highly reluctant to lend with the economy remaining so volatile.  Businesses are looking more than ever to the private equity market to raise capital.